Hodgson Moran
08/28/2024 · High School
If the demand function is where \( P \) and \( Q \) are the price and quantity respectively, determine the point price elasticity of demand if \( P=10 \). Is demand elastic or inelastical this price? a. \( -0,2 \) inelastic b. \( -0,008 \) inelastic c. None of the given options is correct. d. \( -0,8 \) elastic e. \( -2,5 \) elastic
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The point price elasticity of demand at \( P = 10 \) can be calculated using the demand function. If the result is \( |E| > 1 \), demand is elastic; if \( |E| < 1 \), demand is inelastic.
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